Members of the Hollywood film industry blame the economy’s effect on movie production for the decrease in summer movie attendance in North America.

Move ticket sales are down for the 2011 year, but revenue is up. Via http://www.the-numbers.com/market/

This summer marked the lowest ticket audience since 1997, with only 543 million tickets sold. This is the fourth summer in a row where ticket sales slid, and Hollywood is worried that this may not be the last.

“One down summer you could lay at the doorstep of a lack of quality films, audience indifference, whatever. But more than one or two years becomes a trend, and we’re seeing this downward trend in attendance,” said Hollywood.com analyst Paul Dergarabedian. (viaThe Associated Press.)

While some analysts blame Hurricane Irene, which struck the East Coast on Sunday, August 27, for the negative impact in movie theater ticket sales, others just feel that there are better forms of entertainment available for Americans with little money to spend.

Directors are being asked to cut their spending on large movie products since the production companies are feeling the effects of the economy. Some films are even being cancelled to avoid budget cuts, keeping actors out of work.

There is also a current debate in Hollywood regarding a tax credit on California filming. The industry seeks a five-year extension on a $500 million tax credit for film and television production in the state, arguing that without it, the industry will lose jobs and productions to other states with more incentives to offer.

These economic struggles in the industry could be directly affecting the quality of the movies and Americans’ desire to spend money at the theaters. Even members of the industry are quick to criticize recent movies.

“So far there is just nothing terribly compelling about what we’re delivering as an industry,” said Michael Lynton, chief executive of Sony Pictures Entertainment. (via the Los Angeles Times.)

Movies with big-name stars seemed to do more damage than goodin terms of revenue. Cowboys and Aliens could lose millions of dollars although two big name actors, Harrison Ford and Daniel Craig played leading roles.

Though ticket purchases decreased, the industry saw a projected $4.3 billion revenue total from Memorial Day to Labor Day, an increase of less than one percent from last year. This increase could have the rise of ticket prices to thank.

With the availability of Netflix to stream movies straight to the computer, and OnDemand streaming them straight to the TV, there is less incentive for Americans to leave their homes to watch a movie. The industry compensated by raising ticket prices four to five percent, annually.

The summer also saw an increase in 3-D movies, 18 in 2011 from seven the summer before. These movies can cost $3 to $5 more than their 2-D counterparts, requiring less sales to increase the revenue.